Question
task 1: Using a diagram showing consumer and producer surplus, show generally how taxes impact consumer and producer welfare. Remember to highlight the deadweight loss
task 1: Using a diagram showing consumer and producer surplus, show generally how taxes impact consumer and producer welfare. Remember to highlight the deadweight loss (DWL) to your audience. task2: . Then extend this to the macroeconomy by showing how taxes generally impact aggregate demand and aggregate supply (AD-AS). Task 3. Using an AD-AS model, can you answer whether a tax that improves people's health could have any potential long-term benefits for the economy. Task 4. Finally, briefly discuss how you could use an empirical econometric model to assess the health and economic growth consequences of a 'fat tax'
in each task you need to draw a graph ( this question is general there is no data for it)
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